Delivery Hero’s management board, with the supervisory board’s consent, has resolved to pursue an initial public offering (IPO) of 15% of Talabat’s total issued shares.
Talabat is indirectly held by Delivery Hero.
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The company aims to list all Talabat shares on the Dubai Financial Market by mid-December 2024, pending necessary approvals from the UAE’s Securities and Commodities Authority.
This follows Delivery Hero’s announcement on 29 August 2024 regarding its intention to list its food delivery and quick commerce business, operating under the Talabat brand, in the UAE and other Middle Eastern and North African countries in the fourth quarter of 2024.
The public offering and listing will be based on a local prospectus approved by the Securities and Commodities Authority of the UAE on 7 November.
This prospectus is published on Talabat’s website on 11 November.
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By GlobalDataAdditionally, private placements to institutional investors are expected to be made based on a corresponding international offering memorandum that will also be available on the website when the book-building period begins.
Delivery Hero intends to retain a majority interest in Talabat and will be subject to a lock-up period of 180 days after the listing.
The company will be represented by half of the directors on Talabat’s board and will continue to consolidate the business in its financial statements after the IPO is implemented.
The proceeds from the IPO, which will depend on the number and price of Talabat shares sold, will be used for general corporate purposes and optimising Delivery Hero’s capital structure.
Following the IPO, Talabat plans to pay a minimum dividend of around $100m in April 2025 based on the financial results of Q4 2024.
Additionally, it intends to distribute approximately $400m in two instalments in October 2025 and April 2026.
After that, Talabat aims to pay dividends two times each calendar year, targeting a net income payout of 90%. Delivery Hero will benefit from these dividends due to its remaining majority stake.
The intended IPO execution is still subject to market conditions and further resolutions from Delivery Hero’s management board and supervisory board.
In July 2024, the European Commission launched an investigation into Delivery Hero and its Spanish unit Glovo for potential antitrust violations.
